Helping you find the best route to EO

It’s easy to get bogged down in the technical details of everything EO entails. That’s why we help you take a holistic approach.

This way you can see the longer-term legacy you want the business to create for its customers and employees, rather than focusing solely on the legal and financial implications.

We can help you to:

  • Get started
  • Understand the best model for your business
  • Connect you to the sector
  • Provide you with insights, expert advice, and guidance
  • Secure introductions with expert advisors and services for a successful transition
  • Harness learning from other business across the vibrant eoa community 

We also open doors and introduce you to key consultants, advisors, and services that will make your EO journey a success - whether you’re a company owner, employee, business adviser, or work in a public service.

 

But that's not all the support we offer!

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The move to employee ownership can be smooth and stress-free with the right support and advice in place to find your best approach.   

Most organisations looking to make the move to EO are supported by the eoa. We ensure your business and employees get the most out of your employee ownership after your transition.

And we work with you to implement and manage Great EO, and help you to continue learning, improving, and thriving in the long term. 

Key Questions When You're Getting Started

What type of EO would work for your business? 

EO is a flexible format. It can be tailored to suit the needs of your business. You might opt for an Employee Ownership Trust, go 100% EO, or opt for a hybrid model.   

How will the finances and legal aspects work? 

You'll need to ask yourself a lot of questions during this key period:

  • Will existing surplus cashflow in the business fund the transition, or do you need funding from a third party later?
  • Will the exiting owner(s) want an immediate upfront payment, or will they be happy to receive payment over a longer period? 

You’ll also need to know what repayments look like for the business and have a realistic perspective on the current financial situation and forecast going forward. A company that’s not profitable before transition won’t be a successful EO business. We can’t overstate how important it is to have a realistic and accurate valuation of the business.

Further down the line, there’s plenty of financial and legal processes to get to grips with. These include, but aren’t limited to: 

  • Acquisition 
  • How a Trust works 
  • Governance 
  • The particulars of the EO transaction itself 

As well as the eoa, there’s plenty of professional advisors out there to support you through the process. As a member, we can open doors and introduce you to the people best placed to provide support.  

Discover more about how becoming EO works as well as options for financing your transition by joining the eoa. 

Understand your reasons for moving to EO 

Motivation is a crucial element of EO. Passion for a fairer way of doing business and rewarding employees, enthusiasm about leaving a strong legacy, and a desire to retain a positive culture will help your transition be a success. 

But the EO journey doesn’t end when the transaction’s completed. It’s important to keep EO culture alive and thriving post-transition. We can help support you here too with courses aimed at different stages in your journey. Our virtual and in-person networking sessions also provide a forum for you to ask all your burning EO questions.  

Consider the current culture 

What will a move to EO be like for your company – will it be a cultural evolution, or a revolution? EO can help transform a company culture as each employee takes pride and ownership in their role. But having a foundation of an engaged and enthusiastic workforce will provide a positive starting point. 

Have a succession plan in mind 

Before you make your move to EO, there needs be a plan in place for leadership succession. Who'll lead the business going forward, and how will the exiting owner help to prepare them? Many exiting owners spend time with the business to ensure a smooth transition.  

Plan for the changes in governance 

Good governance is paramount to Great EO. You’ll need to understand and plan for how the business will operate going forward. In the case of an Employee Ownership Trust (EOT), the Trust board must be independent, and the employee trustee/director must have levers in the business and some level of oversight. If it’s a hybrid EO transaction (less than 100% owned by the trust), then the minority shareholders need to feel comfortable as well. 

There are a wide range of governance considerations, and we’re here to help illuminate your thinking.  

If you have any more questions or queries, take a look at our more in-depth FAQs.